Additional portfolio options provide access to institutional investments and
true diversification to help investors weather market volatility
COLUMBUS, Ohio, March 10 /PRNewswire/ -- To help investors weather today's
changing market environment, Nationwide Financial Services, Inc. (NYSE: NFS),
has announced enhancements to its Dynamic Advantage Program (DAP), an optional
rider available with America's marketFLEX Annuity.
"Clients are relying more than ever on their investment professional for
optimal risk management and reward within their portfolios, particularly in
ever-changing market conditions," said Mark Phelan, senior vice president of
Individual Investments at Nationwide Financial.
"The enhanced Dynamic Advantage Program provides individuals access to
more sophisticated asset allocation methods that were previously available
only to institutional investors to help mitigate risk in weak and flat
markets," said Phelan.
The goal of the program, according to Phelan, is to increase returns and
lower risk through a unique combination of asset allocation disciplines using
portfolios managed by Rydex Advisory Services, LLC.
America's marketFLEX is a variable annuity that uses multiple asset
allocation techniques to help investment professionals and their clients
adjust investments to manage risk with flexibility and control. DAP is an
optional feature available for an additional cost of 0.35% with America's
marketFLEX Annuity.
The DAP rider offers the following features to long-term investors seeking
a more comprehensive approach to managing their variable annuity investments:
- Risk management in strong, weak and flat markets
- Alternative investments and strategies typically used by institutional
investors
- Risk tolerance questionnaire to help select a model based on investment
objective, time horizon and risk tolerance
- Oversight of investment portfolio models by Rydex Advisory Services
- Timely reporting of model changes 48 hours before they are executed
Key features and enhancements to the Dynamic Advantage Program include
three portfolio management options -- Focused Strategies, Diversified
Solutions and Complete Portfolios -- each with their own series of dynamically
managed asset allocation strategies, including eight new investment models and
three new Rydex variable trust funds.
Each of the DAP model investment portfolios is managed according to one of
three asset allocation methods. Each method utilizes different combinations
of asset classes and investment strategies.
For example, each Focused Strategies model utilizes one alternative
investment strategy. Each Diversified Solutions model utilizes multiple types
of alternative asset classes and investment strategies. Complete Portfolio
models utilize various types of alternative asset classes and investment
strategies, and also incorporate a more balanced asset allocation strategy
that includes traditional asset classes.
DAP is based on Essential Portfolio Theory(SM) (EPT), an investment
approach designed by Rydex to help investment professionals and investors
understand the dynamic nature of modern markets and learn how to potentially
increase portfolio diversification and manage risk.
EPT advocates expanding traditional stock/bond/cash asset allocation menus
to include asset classes both positively and negatively correlated to the
market, such as commodities, futures, real estate, hedge funds, leveraged,
inverse or currency products, while providing individual investors with a
framework for possibly improving performance based on concepts that
historically have proven effective for institutional investors.
Phelan said DAP's turnkey implementation simplifies the process for both
clients and investment professionals.
"With three steps an investment professional can help their client
implement an actively managed asset allocation program," said Phelan.
To activate DAP, clients work with their investment professional to fill
out an online questionnaire to determine the best asset allocation model based
on investment objective, time horizon and risk tolerance. They then fill out
an enrollment form and sign a client advisory agreement, granting Rydex
Advisory Services authority to make changes to allocations. The final step
allows clients to establish an online message center so they can be notified
of model reallocations 48 hours before they're executed.
Phelan said DAP also benefits investment professionals by offering a
customized investment program for clients without the additional money
management responsibilities.
"DAP allows investment professionals to focus on client relationships
while turning over the day-to-day portfolio management duties to Rydex
Advisory Services," he said.
Annuities are long-term, tax-deferred investments designed for retirement
and will fluctuate in value. They also allow customers to create a fixed or
variable stream of income through a process called annuitization. It also
provides a variable rate of return based on the performance of the underlying
investments.
But, as with most things in life, annuities do have limitations. If a
contract holder decides to take money out early, he or she may face surrender
charges. Plus, if a person is not yet 59-1/2, he or she may also have to pay
an additional 10% income tax penalty on top of ordinary income taxes. A death
benefit is available with most variable annuities. If an early withdrawal is
taken, the death benefit and cash value will be reduced.
Annuities contain guarantees and protections that are subject to the
claims-paying ability of the issuer. But, while these don't apply to the
actual performance of the variable accounts, they do offer a level of
protection against investment loss.
Annuities are contracts bought from an insurance company and they are sold
by prospectus. While it may take some time, these documents should be read.
They describe risk factors, fees and charges that may apply to the contract
holder. Please remember, variable annuities may have fees and charges
including mortality and expense, administrative fees, contract fees and the
expenses of the underlying investment options.
An investment based upon any of the asset allocation models should only be
made after consulting with a financial advisor and with an understanding of
the risks associated with any investment in securities, including, but not
limited to, market risk, currency risk, political and credit risks, the risk
of economic recession and the risk that issuers of securities or general stock
market conditions may worsen over time. As with any investment, investment
returns and principal value will fluctuate, so that when redeemed, an
investment may be worth more or less than its original cost. Model portfolios
and investments used in model portfolios are not guaranteed to achieve their
objectives or investment strategies.
Variable products are sold by prospectus. Potential clients may obtain
both the product prospectus and underlying fund prospectuses from their
investment professional or by writing to Nationwide Life Insurance Company,
P.O. Box 182150, Columbus, Ohio 43218-2150. Before investing, carefully
consider the fund's investment objectives, risks, charges and expenses. The
product prospectus and underlying fund prospectus contain this and other
important information. Read the prospectus carefully before investing or
sending money.
About Nationwide Financial(R)
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company
based in Columbus, Ohio, provides a variety of financial services that help
consumers invest and protect their long-term assets, and offers retirement
plans and services through both public- and private-sector employers. It's
part of the Nationwide group of companies, which offers diversified insurance
and financial services. The group is led by Nationwide Mutual Insurance
Company, which is ranked No. 99 on the Fortune 500 based on 2004 revenue(1).
For more information, visit http://www.nationwide.com.
About Rydex Advisory Services, LLC
Rydex Advisory Services, LLC (RAS), an affiliate of Rydex Investments, is
a registered investment advisor that delivers a range of investment services.
Through the Dynamic Advantage Program, RAS provides access to institutional-
quality investment management techniques and methodologies. Rydex Investments
continues to drive change in the financial industry by introducing investment
products and services that challenge conventional thinking, empower investors
and provide essential new options for uncertain market conditions. Rydex
manages $14 billion in assets via more than 50 mutual funds, including nine
exchange traded products. For more information, call 800.258.4332 or visit
http://www.rydexinvestments.com.
America's marketFLEX Annuity is issued by Nationwide Life Insurance
Company, Columbus, Ohio. The general distributor is Nationwide Investment
Services Corporation, member NASD. In MI only: Nationwide Investment Svcs.
Corporation.
Rydex Advisory Services, LLC, is the investment advisor for the Dynamic
Advantage Program. Rydex Advisory Services is not a subsidiary of or
affiliated with Nationwide Mutual Insurance Company.
The Dynamic Advantage Program(SM) ("DAP") is an asset allocation service
offered by Rydex Advisory Services, LLC, an SEC registered investment advisor,
which serves as an investment advisor solely for the purpose of offering model
portfolios available through DAP.
Rydex Advisory Services and Rydex Investments are not responsible for
determining suitability for the Dynamic Advantage Program for any investor.
Investors should ultimately rely on their own judgment or the judgment of
their financial advisor in making suitability determinations.
Nationwide, the Nationwide Framemark and Nationwide Financial are
federally registered service marks of Nationwide Mutual Insurance Company.
America's marketFLEX Annuity is a federally registered service mark of
Nationwide Life Insurance Company. Dynamic Advantage Program and Essential
Portfolio Theory are service marks held by Rydex Investments, an affiliate of
Rydex Advisory Services, LLC.
(1) Fortune Magazine, April 2005
Contacts:
Jeff Whetzel (614) 249-6354
whetzej@nationwide.com
Jeff Botti (614) 249-6339
bottij@nationwide.com
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwide.com
http://www.rydexinvestments.com
CONTACT:
Jeff Whetzel, +1-614-249-6354, or
whetzej@nationwide.com, or Jeff Botti, +1-614-249-6339, or
bottij@nationwide.com, both of Nationwide Financial Services,
Inc.
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